Investing in Bali as a French expatriate

Indonesia, of which Bali is a part, is ASEAN’s leading economy and recorded remarkable economic growth in Q2 2023, reaching a rate of 5.6%. This sustained growth is the sign of a stable, expanding economy, offering a favorable environment for investment.

Bali is thus emerging as an attractive destination when it comes to investing in real estate as a French expatriate. In this article, we’ll explore why Bali deserves your attention.

Diversifying your real estate portfolio

Real estate has long been considered a safe haven, offering a tangible asset that can deliver long-term benefits. When you consider investing in real estate in Bali, it represents a smart diversification strategy. This allows you to spread your assets globally and reduce potential risks.

Having been ranked as the world’s 2nd most popular destination by TripAdvisor in 2023, Bali’s growing popularity further strengthens demand for vacation rentals, which can translate into attractive rental yields for investors. Bali has become a destination of choice for travelers from all over the world, and this represents a unique opportunity to diversify your real estate portfolio in a booming market.

Affordability

One of the distinct advantages of investing in Bali is that prices are more affordable than in many parts of France. With a budget of around €200,000, it’s possible to buy a Bali villa with swimming pool, up to European standards, in particularly attractive areas such as Seminyak, Ubud or Canggu. What’s more, the cost of living is generally lower, which means you can make the most of your budget, whether for property maintenance or day-to-day living.

Attractive rental yields

Bali, particularly in popular tourist areas such as Seminyak, Ubud or Canggu, offers competitive rental yields, with relatively low taxation, making it an attractive opportunity for investors. For example, a well-maintained villa with swimming pool in a tourist area can generate substantial rental income all year round.

PT PMA and Leasehold call options

It is possible to buy freehold property as an expatriate in Indonesia by setting up a PT PMA company. However, this requires significant capital, and we’ve written a previous article detailing this option for those who want to know more. A common alternative for expatriates wishing to invest in Bali is Leasehold, which allows you to buy a property for personal occupation or to invest as a foreigner. This option is often chosen by investors for its simplicity and practicality.

Specific features to be taken into account

Investing in Bali has its own particularities, especially when it comes to land ownership. Ownership rules for foreigners are governed by strict laws. As a French expatriate, it can be difficult to obtain a loan for a property purchase abroad, and it is often advisable to have the total amount needed to invest.

It is also essential to familiarize yourself with the tax situation in your country of residence. Depending on your tax residence, your investment may have an impact on the taxes you owe. It’s a good idea to seek out expert tax advice that can support you in this respect, in relation to your personal situation and assets.

Osiris Investissements is here to guide you through your investment project in Bali. Our experts in France and Southeast Asia can provide you with free advice to help you make informed decisions, and propose residential or rental real estate offers that match your needs. We look forward to hearing from you!